Consumer Protection from Unfair Trading Regulations 2008
Handpicked Media operates a commercial blogging network which engages bloggers to provide editorial content on various matters such as music, fashion and beauty. The material produced was published in various places, including Twitter. The OFT became concerned that these bloggers were publishing online content which promoted the activities of Handpicked Media's clients, without sufficient disclosures in place to make it clearly identifiable to consumers that promotions had been paid for.
The OFT took enforcement action under the 2008 Regulations on the grounds that Handpicked Media's practices constituted misleading omissions contrary to Regulation 3(4)(b) under Regulation 6, in that the promotion did not disclose material information. In addition, the practice constituted unfair commercial practices contrary to paragraph 11 of Schedule 1 of the Regulations, as they involved the use of editorial content in the media to promote a product where Handpicked Media had paid for promotion, without making that clear in the content.
Handpicked Media cooperated with the OFT and has signed undertakings to comply with the law.
This is the first enforcement activity in this area by the OFT under the Regulations. The action makes it clear that disclosure must be made if any content is paid for – probably not only in cash but also in kind. Note that the CAP code also requires advertorials to be labelled as such and for testimonials to be genuine.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
